The price of a parking spot at Provident Garden appreciated by a whopping 257 percent while the value of a residential unit in the same area rose by 27 percent during the last several months, according to the South China Morning Post (SCMP).
"It is even normal to find parking spaces transacted at above $256,000, and $128,017 is becoming the entry point for parking spaces in Hong Kong," according to Alun Jin, a local property analyst, cited by SCMP.
This month, a parking space at Festival City in Sha Tin sold for $320,043, while a space at Tseung Kwan O Plaza went for $266,276, reported.
In June, an 88-square-foot parking space in Sai Ying Pun sold for $663,129, making it the world's most expensive parking spot.
The high rates for parking spots are a result of a parking space shortage. Between 2006-2016, the number of private cars registered in Hong Kong increased some 48 percent, while the number of parking spaces for private cars increased by only nine percent, it was reported.
A steady rise in private car ownership is a reflection of a growing desire by high-net-worth people to purchase prestigious vehicles, according to SCMP.
In a household survey by the Census and Statistics Department, the number of households in Hong Kong with a monthly income over $10,241 more than doubled during the last six years, and the number of households earning between $5,121 and $6,400 a month increased by less than a half.
Parking prices have increased as more investors have joined the market.
According to veteran Hong Kong property investor Lam Chi-fung — a man who bought and sold several hundred car parking spots over the course of the previous three years — "such property investments, which are relatively cheaper compared to buying a private flat, are bound to have an active market."
